Propelled by fast-paced expansion in new European markets, Esprit Holdings Ltd. translated robust increases in revenues into gains in profitability.
For the 12 months ended June 30, net income rose 24.5 percent to 6.45 billion Hong Kong dollars, or $827.6 million, from 5.18 billion Hong Kong dollars, or $664.5 million, during the prior year. Earnings per diluted share were 5.15 Hong Kong dollars, or 66 cents, versus 4.16 Hong Kong dollars, or 53 cents. Figures have been converted at average exchange rates for the respective periods.
Net revenues grew 25.6 percent to 37.23 billion Hong Kong dollars, or $4.78 billion, from 29.64 billion Hong Kong dollars, or $3.8 billion. Wholesale turnover grew 26.2 percent to 20.94 billion Hong Kong dollars, or $2.69 billion, while retail sales were up 25.2 percent to 16.06 billion Hong Kong dollars, or $2.06 billion. Wholesale activities accounted for 56.3 percent of revenues versus 43.1 percent attributable to retailing. Licensing and other revenues grew 8.5 percent to 229 million Hong Kong dollars, or $28.4 million.
By region, sales in Germany, which include wholesale activities directed at Russia, Poland, Greece and other markets, rose 24.8 percent to 17.39 billion Hong Kong dollars, or $2.23 billion, and were responsible for 46.7 percent of the corporate total. The rest of Europe was up 28.1 percent to 14.91 billion Hong Kong dollars, or $1.91 billion, with volume advancing 33.9 percent in both France and Scandinavia, and Spain and Italy, the company’s two newest markets in the region, up 38.6 and 19.8 percent, respectively.
Revenues in Asia-Pacific rose 21 percent to 4.07 billion Hong Kong dollars, or $522.6 million, and those in North America and other areas were up 22.6 percent to 858 million Hong Kong dollars, or $110.1 million.
The gains in Esprit’s retail activities were driven by a 6.9 percent increase in same-store sales, led by 7.2 percent growth in Europe, and a 14.3 percent increase in retail selling space. Germany accounted for nearly half of the company’s retail sales, with volume of 7.9 billion Hong Kong dollars, or $1.01 billion, up 9.5 percent from the prior year.
Retail sales in the Asia-Pacific region were up 14.2 percent to 2.47 billion Hong Kong dollars, or $317.3 million, as strength in Australia, where sales grew 28 percent and rose 7.9 percent on a same-store basis, compensated for lower sales in Hong Kong, where square footage was reduced 7.6 percent as weaker stores were closed and replaced by units in better locations.
The company marked a milestone at the end of its fiscal year as its directly managed stores and controlled wholesale points of sale exceeded 1 million square meters, or about 10.8 million square feet.
The company, which is about to celebrate its 40th anniversary, expects to open 20 stores in Germany, 10 stores in Scandinavia and five stores in France during the current year. It also plans to open its first store in Portugal this winter. Overall, it will invest about 1 billion Hong Kong dollars, or some $128 million, to open more than 130 stores in the year ahead. Esprit also projects investments of about 300 million Hong Kong dollars, or $38.5 million, to revamp existing stores.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews